CBN Revokes Heritage Bank’s Licence Over Financial Instability

The Central Bank of Nigeria (CBN) has announced the immediate revocation of Heritage Bank Plc’s licence, citing the bank’s persistent inability to improve its financial performance.

 The decision, revealed in a statement by Hakama Sidi-Ali, Acting Director of the Corporate Communications Department at the CBN, is aimed at maintaining the integrity and stability of Nigeria’s financial system.

In the statement released on Monday in Abuja, Sidi-Ali emphasized that the revocation aligns with the CBN’s mandate to foster a sound financial environment in Nigeria. 

This action is supported by the powers vested in the CBN under Section 12 of the Banks and Other Financial Institutions Act (BOFIA).

“The Board and Management of Heritage Bank have been unable to enhance the bank’s financial health, which poses a significant threat to the stability of the financial system,” Sidi-Ali stated.

 “This follows an extensive period of engagement and the implementation of various supervisory measures by the CBN, aimed at curbing the bank’s decline. 

Unfortunately, the bank has continued to deteriorate with no foreseeable path to recovery, necessitating the revocation of its licence.”

The CBN’s intervention is not only a response to Heritage Bank’s financial struggles but also a proactive measure to bolster public confidence in the banking sector and ensure the overall soundness of the financial system. 

The Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the liquidator of Heritage Bank, as stipulated under Section 12 (2) of BOFIA 2020.

“We want to reassure the public that the Nigerian financial system remains robust,” Sidi-Ali continued.

“Today’s action underscores our unwavering commitment to taking all necessary measures to safeguard the safety and soundness of our financial system.”

Heritage Bank’s revocation comes after a series of CBN-supervised interventions aimed at stabilizing the bank, all of which failed to yield the desired outcomes. 

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